According to reports, in 2020, HMD Global, producing smartphones under the Nokia brand, demonstrated weak sales both by the number of devices sold and in income. Nevertheless, the company claims that is profitable since June 2020, including due to a significant decrease in operating losses.
According to the representative of Nokia Mobile, the company sold 55 million smartphones and ordinary mobile phones in 2020. Income decreased from 1.7 billion euros in 2019 to 1.2 billion in 2020.
At the same time, an important indicator is that operating losses in 2020 also decreased, and several times. Taking into account the fact that such losses are a normal phenomenon for recently open business, we can talk about the noticeable positive dynamics of the company’s development.
For the entire 2020, operating losses amounted to 47 million euros, and in 2019 – as many as 295 million euros, and 188 million a year earlier.
According to the Counterpoint Research agency, the first half of 2020 was very difficult for the company because of the coronavirus pandemic. In the first quarter, she sold only 1.7 million smartphones, in the second quarter – 1.4 million, and in the second half of 2020, restoration began, up to 2.1 million copies in the third quarter and 2.8 million in the last one. At the same time, industry experts assume that the increase in profitability was caused by the exclusively high marginity of ordinary 4G-phones, which manufacturer suggested for the markets of developing countries like India.